 "Akshaya Moondra")
Vodafone Idea is anticipating a reduction in payment liabilities starting from the third quarter of FY23, according to the telecom company's Chief Executive Officer Akshaya Moondra, who spoke on Wednesday.
Addressing a post-result analyst call, Moondra noted that the company's costs related to debt servicing would decrease substantially from the second quarter of FY23. The company is projecting that cash flows will be sufficient to cover debts and payments maturing over the 'upcoming three quarters'.
Moondra acknowledged that the introduction of 5G by competitors Reliance Jio and Bharti Airtel has begun to affect customer numbers. "It would be wrong for me to say that it is not having an impact because competitors have 5G and we don't. But I would say it is not having a significant impact at the moment," he stated.
He reassured that Vodafone Idea will launch 5G services once the funding issue has been resolved.
The company has informed the stock exchanges that it has received communication from a promoter group entity, promising financial support of up to Rs 2,000 crore if needed to meet payment obligations. As of June 30, the total gross debt of the company (excluding lease liabilities and including interest accrued but not due) stood at Rs 2.1 trillion.
The company estimates that it will incur a penalty of Rs 12-13 crore due to its failure to meet the government's minimum rollout obligations for 5G services, Moondra revealed. Out of the 17 telecom circles where the company had procured 5G spectrum, it has yet to launch 5G in 15 circles.
Vodafone Idea (Vi) reported a 7.5 per cent higher consolidated net loss of Rs 7,837 crore in the first quarter (April to June) of FY24 on a year-on-year basis, a result of escalating expenses. The net loss has expanded from Rs 7,293.3 crore in Q1 FY23.
